Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase of $110,300 of equipment, having a four year useful life: Net Income $42,000 26,000 12,000 (1,000) Net Cash Flow Year 1 Year 2 Year 3 Year 4 $71,000 55,000 41,000 28,000 Present Value of $1 at Compound Interest 69b 10% 12% 15% 20% 1 0.943 0.9090.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 40.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 70.665 0.513 0.452 0.376 0.279 80.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162